Arbitration Clause In Invoices Can Be Binding On Parties When They Acted Upon The Invoices And No Objections Were Raised: Bombay HC
1 week, 2 days ago

Arbitration Clause In Invoices Can Be Binding On Parties When They Acted Upon The Invoices And No Objections Were Raised: Bombay HC

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The Bombay High Court bench of Justice Somasekhar Sundaresan has observed that where the correspondence between the parties included invoices which contained an arbitration clause and the parties acted upon those invoices without protesting, then it could be deemed that the party had accepted the arbitration clause. Contentions The Counsel for the Petitioner submitted that the arbitration agreement is contained in the invoices raised by the Petitioner on the Respondent. These invoices were raised by the Petitioner on the Respondent during the period between February 2018 and June 2019 and each of the invoices contained an arbitration clause. Ltd. – 2022 SCC OnLine Bom 7807, that where the parties had acted upon the invoices and there was no denial of invoices raised by the applicant, the clause contained in the invoices which clearly stipulated a reference to arbitration, deserved to be construed as an arbitration clause.

History of this topic

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